Federal Deficits to Grow More Than Expected Over Next Decade, CBO Says

President Trump and Congress have reached a spending deal that avoids a crisis on the debt ceiling but adds significantly to the federal budget deficit. WSJ's Gerald F. Seib explains why the new agreement may focus attention on runaway government spending. Photo: AP (Originally published July 24, 2019)

WASHINGTON—Federal deficits are projected to grow much more than expected over the next decade after a budget agreement struck last month, pushing government debt as a share of the economy closer to the highest level since World War II, the Congressional Budget Office said.

The deal agreed upon by congressional leaders and the White House will add roughly $1.7 trillion to deficits between 2020 and 2029, assuming federal spending continues to rise by the rate of inflation beyond 2021. Much of that increase will be offset by...